Xcite Energy Announces Drawdown on Equity Line

Xcite Energy, an oil exploration and development company in the North Sea, announced that it has drawn down on its Standby Equity Distribution Agreement with YA Global Master SPV Ltd.  This draw down has been undertaken at a price of GBP 1.1025 per share and will result in the issue of 1,814,059 ordinary shares of no par value in the capital of the Company to Yorkville. This funding will be used as future working capital and to progress towards first oil from the Bentley field.

Xcite Energy has re-configured its approach to the first phase of development of Bentley to provide a more financially efficient outcome, in response to feedback from the Department of Energy and Climate Change on the Bentley field development plan. This re-configuration has allowed the Xcite Energy to maintain the first oil date in 2012, while enabling the completion of a more cost effective field development plan. The principal elements of this plan are Phase 1A with first oil planned for 2012, Phase 1B planned for 2013 and Phase 2 estimated to commence in 2016. This plan is in the final stage of DECC approval.

At the current moment the stock prices of the Xcite Energyshares do not show any positive sign,  influenced by the delayed expectations and new financing approach to the Bentley Field.

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Offshore Nieuws Staff, December 2, 2011;  Image: Xcite